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TheStreet Open House

Angel Groups Invest More Per Deal, Stay Local

KANSAS CITY, Mo., SANTA CLARA, Calif. and NEW YORK, July 18, 2013 /PRNewswire/ --  The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the Q1 2013 Halo Report today, a national survey of angel group investment activity, which finds round sizes are trending up to a median of $680K per deal, pre-money valuations remain stable at $2.5 million and most angel investment happens in angel groups' home states.

Infographic.

US angel investment continues to be dispersed nationwide, and in the first quarter entrepreneurs in the Southwest region of the country received a slightly larger share of dollars than startups in California, for the first time.  The sectors getting funding remain concentrated in Internet, healthcare and mobile, with 72% of completed Q1 deals in these categories.

"The market for angel investing is solid: pre-money valuations are stable, round sizes are trending up, and market activity is spread widely throughout the U.S.," said Rob Wiltbank, Vice Chairman of Research, Angel Resource Institute.  "The key trends over the last few years have been syndication and broader geographic distribution of investment; both of which suggest that attractive new ventures are finding places to start all over the country."

Halo Report Q1 2013 Highlights:

Round Sizes

Median angel round sizes reached another five quarter high at $680K in Q1 2013 up from $550K a year ago and $650K last quarter. When angel groups co-invest with other types of investors, the median round size is higher at $1.5M. Seventy-five percent of angel deals are syndicated.

Valuations

Pre-money valuations in early stage companies remain steady at $2.5M.

Locations

For the first time the Halo Report compares the location of angel groups with the location of their investments. Eighty-one percent of deals were completed in the angel groups' home state over the past 12 months.

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